Question

Derive the log-run cost function assuming that the production function s given by q = K+L?

Derive the log-run cost function assuming that the production function s given by q = K+L?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

or

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Derive the long-run cost function assuming that the production function s given by q = K+L?
Derive the long-run cost function assuming that the production function s given by q = K+L?
The production function is q = (10KL)/(K+L) where L = labor, K= capital The cost function...
The production function is q = (10KL)/(K+L) where L = labor, K= capital The cost function is C = wL + vK where w = wages and v = cost of capital Assume K is fixed in the short run at K = 20 a.) Find the short run cost function. Find also the short run average and marginal costs. b.) The shut-down price is defined as the minimum of average variable cost. For this cost function, what is the...
Suppose, the production function for X company is given by ? = 5(??) 0.5 where, Q...
Suppose, the production function for X company is given by ? = 5(??) 0.5 where, Q is the amount of output produced, K is the amount of capital employed in production and L is the amount of labor employed in production. The prices of capital and labor are given by ?? = $48 and ?? = $75. a)Express the total cost in terms of K and Q. b)Derive the expression of marginal cost of capital. c)Derive the long-run cost function...
Suppose a firm’s long-run production function is given by Q=K^0.25 L^0.25 ,where K is measured in...
Suppose a firm’s long-run production function is given by Q=K^0.25 L^0.25 ,where K is measured in machine-hours per year and L is measured in hours of labor per year. The cost of capital (rental rate denoted by r) is $1200 per machine-hour and the cost of labor (wage rate denoted by w) is $12 per hour. Hint: if you don’t calculate the exponential terms (or keep all the decimals when you do), you will end up with nice numbers on...
Firm A’s production function and cost line are given by:Q=Q(L,K)=2 L^(1/2) K^(1/2) (The production function)...
Firm A’s production function and cost line are given by:Q=Q(L,K)=2 L^(1/2) K^(1/2) (The production function)?L+?=30000 (The cost line of firm A):?L is the amount of labor hired.?K is the amount of capital hired.??p_L or the price of labor is 1 dollar per unit.??p_K or the price of capital is 1 dollars per unit.C or cost (think of it as the firm’s budget) is 30000 dollars.How much labor and capital should this firm optimally hire?
1. Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C =...
1. Consider the Cobb-Douglas production function Q = 6 L^½ K^½ and cost function C = 3L + 12K. (For some reason variable "w" is not provided) a. Optimize labor usage in the short run if the firm has 9 units of capital and the product price is $3. b. Show how you can calculate the short run average total cost for this level of labor usage? c. Determine “MP per dollar” for each input and explain what the comparative...
Suppose a firm’s production function is given by Q= F(K,L) . Describe the differences between the...
Suppose a firm’s production function is given by Q= F(K,L) . Describe the differences between the firm’s demand for labour in the short-run and long-run
Suppose a firm’s production function is q = f(K,L) = (K)1/3 (L)1/3 (a) Set up the...
Suppose a firm’s production function is q = f(K,L) = (K)1/3 (L)1/3 (a) Set up the firm’s problem and solve for K∗ and L∗ here. Show your work to derive the value of K∗ and L∗ otherwise no marks will be awarded. Note: your solution 11 should be: ∗ K = P^3/27r2w L = P^3/27w2r How much does the firm produce (i.e. what is q∗)? What is the profit earned by this firm (i.e. what is π∗)? (b) The firm...
A firm’s production function is Q(L,K) = K^1/2 + L. The firm faces a price of...
A firm’s production function is Q(L,K) = K^1/2 + L. The firm faces a price of labor, w, and a price of capital services, r. a. Derive the long-run input demand functions for L and K, assuming an interior solution. If the firm must produce 100 units of output, what must be true of the relative price of labor in terms of capital (i.e. w/r) in order for the firm to use a positive amount of labor? Graphically depict this...
Given production function: Q=L3/5K1/5. Where L is labor, K is capital, w is wage rate, and...
Given production function: Q=L3/5K1/5. Where L is labor, K is capital, w is wage rate, and r is rental rate. What kinds of returns to scale does your firm face? Find cost minimizing level of L and K, and long run cost function.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT